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The rulemaking will provide guidance regarding the active trade or business requirement under section 355(b). Specifically, with regard to the satisfaction of that requirement, these proposed regulations will provide additional guidance for determining whether the distributing corporation and controlled corporation each (i) carried out an active trade or business throughout the statutorily required five-year period ending on the distribution date, and (ii) are engaged, immediately after the distribution, in the active conduct of a trade or business.